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Bitcoin (BTC) traded near $61,400 on Wednesday, while gold slipped below $4,200 per ounce as investors reacted to rising Treasury yields, a stronger US dollar, and growing expectations that US interest rates will remain elevated. Both assets are often promoted as stores of value, yet investors have been reducing exposure as rising inflation concerns push expectations for tighter monetary policy higher.
The decline comes ahead of key US inflation data, with markets increasingly focused on whether price pressures will force the Federal Reserve to keep rates elevated for longer. Traders are now pricing in more than a 70% probability of a Fed rate hike by December 2026, according to CME FedWatch data.
The latest sell-off has unfolded alongside a sharp rise in Treasury yields and a stronger US dollar.
The US 10-year Treasury yield climbed to 4.54%, while Brent crude oil traded near $92 per barrel after renewed US military strikes against Iran increased concerns over energy-driven inflation. Higher oil prices have added to inflation concerns, making it harder for the Federal Reserve to ease policy.
That combination has created a difficult environment for assets that don’t generate income. Gold fell to around $4,188, its lowest level since March 2026, while Bitcoin extended losses after failing to hold recent gains above $64,000.
🚨 PRECIOUS METALS ARE CRASHING
$1.48 TRILLION has been wiped out from precious metals in the last 12 HOURS.
Gold is down -4.1%, wiping out $1.22 trillion from its market cap.
Silver is down -7%, wiping out $260 billion from its market cap. pic.twitter.com/8gtWJMnqTb
— Bull Theory (@BullTheoryio) June 10, 2026
The decline comes despite Bitcoin’s growing “digital gold” narrative and gold’s long-standing role as an inflation hedge. Yet both assets weakened as inflation fears increased because investors focused on the interest-rate implications rather than the inflation protection argument.
Bitcoin’s recovery from last week’s drop below $60,000 was supported by a large wave of short liquidations.
More than $500 million in bearish crypto positions were wiped out during the rebound, marking the largest short squeeze since April. While short covering helped push prices higher, several market participants argue that new buying demand remains limited.
Diana Pires, chief business officer of sFOX, said spot demand has yet to return in a meaningful way, citing persistent outflows from US spot Bitcoin exchange-traded funds (ETFs) that have kept institutional investors cautious during the current correction.
A similar view came from 10x Research, which argued that inflation concerns have been driving ETF investors to reduce Bitcoin exposure since May. The company’s latest analysis suggested markets may still be underestimating inflation risks ahead of the latest Consumer Price Index (CPI) release.
Bitcoin is down $21,000 in 30 days, and it's not MicroStrategy's fault.
When CPI hit 3.8% on May 12, we flagged inflation as a headwind the next day.
What followed: ETF holders systematically liquidated BTC exposure.
Today's CPI print is the key.
Bitcoin needs sub-4.0%.… pic.twitter.com/r1zyTzlm4d
— 10x Research (@10xResearch) June 10, 2026
Onchain data presents a different picture from ETF flows and macro-driven selling pressure.
CryptoQuant data shows Bitcoin’s seven-day moving average (MA) supply in loss has climbed above 50%, the highest level of 2026. According to CryptoQuant contributor Gaah, previous instances where more than half of the circulating supply moved into loss coincided with capitulation periods and cycle-bottom formation.
Bitcoin Supply in Loss MA7d hits a new high of 50% in 2026
“Historically, when the indicator reaches levels above 50%, it signals periods of bitcoin:native capitulation and formation of cycle bottom.” – By @gaah_im pic.twitter.com/nNA27xbMNY
— CryptoQuant.com (@cryptoquant_com) June 9, 2026
Separate CryptoQuant data pointed to whale accumulation during Bitcoin’s recent drop. Contributor Woo Minkyu reported that the Exchange Whale Ratio surged to 61.6% when Bitcoin fell into the $60,000-$61,000 range, indicating large holders absorbed selling pressure as weaker hands exited positions.
Technical indicators also suggest selling momentum may be becoming stretched. Bitcoin’s relative strength index (RSI) has dropped to near 24, placing it deep in oversold territory and near levels that have previously appeared during major market pullbacks.
At the same time, Bitcoin remains below its major moving averages and continues to trade under key resistance levels. Immediate support sits around $60,000, while resistance remains near $65,000 and then around $70,500.
Gold faces a similar challenge. Citi analyst Max Layton said gold’s historical negative correlation with US real rates has reemerged after weakening during the central bank-driven rally between 2022 and 2024. UBS strategist Joni Teves also noted that gold’s relationship with real rates and the US dollar has strengthened in recent months. If yields continue rising, pressure on precious metals could persist despite geopolitical uncertainty.
Markets now await Wednesday’s CPI report and Thursday’s Producer Price Index release, with both reports likely to influence expectations for Federal Reserve policy after traders priced in more than a 70% probability of a rate hike by December 2026.
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